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Nov. 25, 2019, 10:29 a.m. EST

Hasbro upgraded on earnings growth potential from Entertainment One acquisition

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By Tonya Garcia

Hasbro Inc. /zigman2/quotes/201249319/composite HAS -3.62% shares rose 3.4% in Monday trading after the toy maker was upgraded to buy from neutral at UBS based on the earnings growth potential from the Entertainment One acquisition. UBS maintained its $117 price target. The $4 billion acquisition, which was announced in August, includes Peppa Pig and a film and television division. UBS expects 13% earnings-per-share accretion in 2021 and nearly 18% in 2022. Hasbro has since announced a third-quarter earnings miss, which the company said was impacted by tariffs. "After a weak Q3 and a meaningful reset in numbers, we see more than 20% upside to shares, driven by better-than-expected revenue and cost synergies from eOne and gaming portfolio momentum," analysts said. "The stock appears to be pricing in a lackluster holiday season, combined with further tariff disruption and no upside to $130 million of initial synergy guide." UBS channel checks show a pickup in Q4 sales. Hasbro stock is up 22.3% for the year to date while the S&P 500 index /zigman2/quotes/210599714/realtime SPX -4.42% is up nearly 25% for the period.

US : U.S.: Nasdaq
$ 79.51
-2.99 -3.62%
Volume: 2.36M
Feb. 27, 2020 4:00p
P/E Ratio
Dividend Yield
Market Cap
$11.29 billion
Rev. per Employee
-137.63 -4.42%
Volume: 3.91B
Feb. 27, 2020 4:20p

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